New York's Retail Investor Base
New York has one of the largest and most sophisticated retail investor populations in the country. New York City alone has millions of brokerage accounts. Retail investors throughout the state — from the Bronx to Buffalo — use discount brokers that participate in PFOF arrangements with Citadel Securities.
The Martin Act and New York Enforcement
New York's Attorney General holds broad enforcement authority under the Martin Act, one of the most powerful state securities laws in the nation. While the Martin Act has historically focused on fraud rather than market structure, the broad scope of the law gives New York's AG potential tools to examine practices affecting New York investors. FINRA and the SEC have primary jurisdiction over PFOF.
New York Regulatory Landscape
The New York Department of Financial Services (DFS) regulates financial institutions in New York. Retail investor protection issues involving brokerage accounts typically fall under FINRA and SEC jurisdiction rather than DFS, but New York's regulatory environment is generally active on consumer protection matters.
Filing Complaints in New York
New York investors can file complaints with FINRA, the SEC, and the New York Attorney General's office regarding broker misconduct or investment fraud. The OAG's Bureau of Investor Protection is specifically tasked with protecting New York investors.